RAP (ASX) Ann: Quarterly Update and Appendix 4C

Originally posted by TerribleTadpole ↑

"if anything, the chart looked like classic pump and dump" – If you're relying on technical analysis, why are you interested in what's in the quarterly report? Incidentally the pump and dump occurred on 16-Oct-2018.

"this company is in a lot of debt" – no, it is debt-free.

"this stock needs desperate serial of bad news , sink it down, then we can start moving north" – The bad news came on 30-Oct-2018. Share price sank down then.

"staying at 10c will eventually create a huge head that is hard to recover" – This makes no sense at all. The steadiness of the price and the diminishing volumes signify not a lack of confidence but a strong conviction by holders that they have the stock at the right price for their risk appetite. All the people who want the stock at this price have it, all the people who want out at this price have gone.
"the stock since the plunge has not had even a dead cat bounce" – Stock rebounded over 50% from its low of 9c on 30-Oct-2018 to a high of 14c on 31-Oct-2018.

"it is hung here for the last 2 months" – Which is a pretty good technical sign that the stock is rock solid at this level and well supported.

You're making a terrible and naive mistake here in thinking that technical analysis drives the share price. Technical analysis takes historical activity and attempts to extrapolate future activity from the past. The only realistic extrapolation you can make from a dead flat line is a continuing dead flat line. It will be some change in fundamentals that will shift the share price, and technical analysis will completely fail to predict it.

We're all here waiting for news; sitting at the table with our empty plates in front of us and our cutlery in our hands, and the noose around our necks tied to the rafters above us. Somebody will either serve us dinner, or kick the chair out from under us.

Expand

nice. decided not to get into meaningless arguments with the others who fired at anything against their firm belief.
the company is " debt -free" ... depending on how you see it. eps -ve, negative cps. cash in hand due to issuring shares. I doubt it will be able to sustain itself. it's all financial engineering.

u r absolutely right. speculative stocks chart less relevant. but in my experience unfortunately it still tells a lot of stories . the sp price is not determined by how many retail holders are there.

and a bounce from 9c to 14c..... no proper Elliot way. low Fibonacci.... really not much meat there.

I like ur analogies. GLTL